Switchgear Market

Switchgear Market Size

According to a recent study by Global Market Insights Inc., the global switchgear market was estimated at USD 156.3 billion in 2024. The market is expected to grow from USD 168.8 billion in 2025 to USD 317.5 billion in 2034, at a CAGR of 7.3%.

Government worldwide is continuously launching new initiatives and committing substantial investments to electrical infrastructure projects. According to OECD estimates, global investments in innovative urban development initiatives are expected to reach approximately USD 1.8 trillion for metropolitan infrastructure projects, highlighting significant growth opportunities for advanced switchgear solutions.

Developed and developing companies are working on numerous projects in energy sectors, driving the need for electrical equipment, thereby creating the demand for switchgear worldwide. The switchgear will become a crucial need for all manufacturers in the world in almost every industry. This need will further increase with ongoing the reliance of technology for the manufacturers.

The companies in these industries, along with the considerable research and development, are bringing new innovation and development, transforming the landscape of switchgears market. For instance, Siemens introduced the 8DAB 24 and enhanced the NXPLUS C 24, focusing on industrialized and high-end ratings up to 24 kV and 2500 A. These products will have a huge role in the companies share in the industry.

This increasing demand necessitates substantial investments in power transmission equipment and distribution infrastructure. The industry is revolutionizing due to ongoing multiple projects in this industry. The electrical infrastructure is crucially carrying a demand for the electrical equipment, thereby creating a huge demand for switchgear market.

Furthermore, the rising emphasis on automation and digitalization in power distribution systems is propelling the market forward. The integration of smart switchgear with IoT (Internet of Things) technology enables real-time monitoring, remote control, and predictive maintenance, reducing downtime and operational costs. This technological shift is attracting investments from utilities, industrial facilities, and commercial sectors seeking enhanced system efficiency and reliability.

Regulatory standards and safety requirements also influence market growth. Governments and industry bodies are implementing stricter regulations to ensure electrical safety and environmental sustainability, prompting the adoption of modern, eco-friendly switchgear solutions. Additionally, the aging infrastructure in many regions necessitates replacement with more durable and efficient equipment, providing further opportunities for market expansion.

Switchgear Market Trends

• The rising trends in switchgear industry is mainly advanced technology including AI, IoT, and blockchain. These technologies are creating major impact on the market growth remarkably. The rising preference for these technologies and growing use of AI in electrical industry are significantly aiding the switchgear market growth.
  
• The economic changes brought by the developed economies is tremendous and this is what propels the integration of AI in different sectors. In Germany, AI investment is expected to increase the national income by more than 13% by 2025, which is over USD 488 billion of economic value, demonstrating the growth potential of the technology.
  
• The increasing inclination of technology especially towards AI and IoT are transforming switchgear along with many other industries. AI adoption in enterprises has reached major milestones. Over 80% of Adobe Experience Cloud clients use AI to enhance their web experience, and so their adoption of AI in digital business is nearly universal.
  
• Recent innovations reveal a tendency toward miniaturization and more effective utilization of available spatial resources. The shift towards size reduction and efficiency of space utilization can be seen in recent developments. For instance, Fuji Electric is dramatic saving switchgear, developing in December of 2022, which reduced the footprint of standalone models by 20% from previous models through proprietary analytical technologies.
  
• Countries including China and the U.S. are making considerable investments which are developing the switchgear industry at a higher rate. The magnanimous investment in smart grid investments depicts a foreseen elevation in importance where the State Grid Corporation of China put CNY 65 billion toward smart grid technology in 2021 in anticipation of energy consumption reaching 667.5 quadrillion British Thermal Units by 2025.
  

Switchgear Market Analysis

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• The switchgear industry was valued at USD 133.6 billion, USD 144.6 billion and USD 156.3 billion in 2022, 2023 and 2024 respectively. Government and companies, along with the mitigating operational costs, are complying with governmental regulations, and meeting climate goals. They are constantly trying to achieve crucial output in this market. They are making considerable investments in switchgear technology to achieve those aims.
  
• The low voltage segment is anticipated to cross USD 180 billion by 2034 and will significantly grow in coming years mainly due to the rising preference for renewable energy across the world. As per the reports by World Economic Forum, Global renewable energy capacity grew by a record-breaking 15.1% in 2024 to reach 4,448 gigawatts (GW).
  
• The medium voltage segment holds 33.8% market share in 2024, which is growing with increasing utility applications across the multiple sectors. There are numerous projects that are under construction that will significantly create a strong need for switchgear as well as other electrical equipment. The medium voltage switchgear will preferably be used in renewable energy sector as well as manufacturing.
  
• High voltage segment is also important due to growing preference for maximizing energy usage and enabling effective functioning. Companies in this industry are opting production innovation with consideration of better energy efficiency. For instance, Siemens’ innovated CC platform controls equipment as well as lighting to lower energy expenditure by up to 30%.
  
• The high voltage switchgear segment holds a pivotal role in the overall switchgear market due to its critical function in managing and controlling large-scale electrical power transmission and distribution systems. High voltage is essential for ensuring the reliable, efficient, and safe transfer of electricity over long distances. Its importance is underscored by the increasing demand for stable power supplies in growing urban centers, industrial zones, and renewable energy integration.
  
• According to the International Energy Agency (IEA), global investments in grid infrastructure, including high voltage substations and switchgear, are projected to reach hundreds of billions of dollars annually. The World Bank estimates that developing countries alone will need over USD 700 billion in grid investments over the next decade to ensure reliable electricity access, much of which involves high voltage infrastructure. These investments highlight the strategic role high voltage switchgear plays in energy security and grid modernization efforts worldwide.
  

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• Based on insulation, the air insulation segment will cross USD 195 billion by 2034 and will be further projected to grow in the coming years. It is mainly due to the significantly rising demand for energy across the world as well as growing industrialization and urbanization, helping the market grow.
  
• The gas insulation segment in the switchgear market is anticipated to grow at a CAGR of more than 7% till 2034. There is a rapid growth of innovation, along with the increase in gas consumption all over the world, in the gas insulation industry and technology. This facilitates the need for power distribution systems which gas-insulated switchgear (GIS) support by offering compact and reliable solutions.
  
• The projects in this industry are also increasing tremendously, driving the demand for the switchgears. For instance, U.S., the INEC association reported 44,265 construction projects in 2022, marking a 9.2% increase from the previous year, with 24,418 housing units approved.
  
• The rising preference for renewable energy is a key catalyst driving the global demand for air as well gas insulated switchgear, as the transition to cleaner, sustainable power sources necessitates advanced electrical infrastructure capable of handling new challenges.
  
• The government are adopting renewable energy sources, along with the rising need for clean energy. For instance, in 2024, the U.S. solar energy sector experienced significant growth, adding a record-breaking 50 gigawatts (GW) of new solar capacity. This included both utility-scale and distributed generation, with utility-scale solar accounting for 61% of all new electricity-generating capacity added to the grid.
  
• Moreover, Europe installed 16.4 GW of new wind power capacity in 2024. The EU-27 installed 12.9 GW of total of it. Switchgear plays a crucial role in ensuring the safe, reliable, and efficient operation of renewable energy plants, as well as integrating these sources into existing power grids. Therefore, the demand for switchgears will significantly increase in coming years.
  

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• U.S. switchgear market is expected to reach more than USD 31 billion by 2034, due to the increased demand for energy operational management and the modernization of electrical infrastructure.
  
• China holds crucial role in the growth of this market since it is a leading supplier of sensors, controllers, and automation equipment that form the backbone of switchgear solutions. China in 2023 spent approximately USD 72 Billion in electrical infrastructure industry. This number shows that the demand for switchgears has been significantly on a higher side for the last 2 years.
  
• In Germany, advanced switchgear technologies are developed and incorporated by top-class companies including Bosch, Siemens, and Schneider Electric. These German automates and energy systems that are already utilizing smart grids, energy storage, and IoT solutions, and are now starting to get implemented into buildings-especially for commercial and industrial projects in smart cities.
  
• Europe has consistently been at the forefront of technological innovation, particularly within the electrical equipment and energy sectors. Advancements in this region have significantly contributed to the growth and heightened demand for state-of-the-art electrical infrastructure. European associations and regulatory bodies play a pivotal role in fostering this progress through strategic initiatives and supportive policies.
  
• For instance, the European Commission's endorsement of the German government's support scheme amounting to approximately USD 29.69 billion demonstrates the region's commitment to advancing renewable energy capacities. Such initiatives not only reinforce Europe's leadership in clean energy but also stimulate growth within the electrical equipment market, including switchgear technologies.
  
• Middle East & Africa region is also progressing gradually in the electrical infrastructure. Multiple companies are investing huge amounts in the Middle East & Africa. As environmental concerns have been growing, the Middle East has made consistent improvements in energy usage and efficiency through sustainable development. Dubai, for instance, has implemented Energy Strategy to 2030 to efficiently control energy usage and cut significant carbon emissions by 2030.
  
• Saudi Arabia has become a hub for technology as well as building infrastructure in the world. For instance, Saudi Arabia started the Rua Al Madinah project in August 2022 to expand the Kingdom's tourism and pilgrimage industries. The building project was designed and carried out by Rua Al Madinah Holding Company, which is owned by PIF and is in line with Saudi Arabia's Vision 2030.
  

Switchgear Market Share

• Top 5 companies including ABB, Siemens, General Electric, Schneider Electric, and Eaton hold more than 40% of the market around the world on account of their large network all over the world.
  
• These giant companies continuously research new products and solutions, making them vital players in this industry worldwide. These companies prefer massive investment especially in R&D. Additionally, these companies executes various business expansion tactics to gain a significant market share in that industry.
  
• Technological expertise, diverse product portfolios, and innovative solutions. As industry leaders, they develop high-performance, reliable switchgear that are essential for maintaining grid stability.
  
• Furthermore, these corporations leverage their extensive international presence and comprehensive service networks to expand their influence across diverse markets. Their capability to undertake large-scale projects in regions such as the Middle East, Asia-Pacific, and Europe underscores their global reach and operational expertise.
  
• A key differentiator is their ability to tailor solutions to meet the unique grid requirements of each region, ensuring optimal performance and reliability. This customization capability makes them highly preferred partners for utilities and independent power producers, who seek innovative, efficient, and adaptable electrical infrastructure solutions to support their expanding renewable energy portfolios and modern grid systems.
  

Switchgear Market Companies

• In May 2025, ABB announced a strategic partnership with E. ON, Germany’s largest distribution system operator (DSO), to supply its innovative sulfur hexafluoride (SF6)-free gas-insulated switchgear (GIS). The project involves the delivery of ABB’s next-generation Safe Ring and Safe Plus Air 24kV secondary GIS, which are part of ABB’s expanding portfolio of environmentally friendly, SF6-free switchgear technologies.
  
• In July 2025, ABB introduced a complete switchgear solution for wind turbines to support the deployment of larger wind turbines with higher yields. The solution offers the industry’s highest power rating for a complete switchgear solution, integrating a 7200A Emax 2 air circuit breaker and a 3200A AF Contactor, to provide outstanding reliability and switching efficiency.
  
• In April 2025, Siemens Ltd. invested USD 37 million to expand its manufacturing operations in Goa, India. The company expressed interest in collaborating with local MSMEs to incorporate them into its supply chain. The firm already operated five factories in Goa and was actively working to increase its capacities. This expansion was part of its effort to meet the growing demand for smart electrical and automation products.
  
• In 2024, Schneider Electric reported a total revenue of USD 28.99 billion. Schneider Electric has unveiled the next generation of its innovative product, SureSeT MV switchgear, specifically for use in Canada. This new generation solution seeks to offer digital ready enablement of primary switchgear applications featuring the EvoPacT circuit breaker.
  

Major players operating in the switchgears market are:

• ABB
• Bharat Heavy Electricals
• CG Power and Industrial Solutions
• Chint Group
• Eaton
• Fuji Electric
• General Electric
• HD Hyundai Electric
• Hitachi Energy
• Hyosung Heavy Industries
• Larsen & Toubro Limited
• Lucy Group
• Legrand
• Mitsubishi Electric
• Orecco Electric
• Ormazabal
• Panasonic
• Powell Industries
• Schneider Electric
• SGC
• Siemens
• Toshiba
  

Switchgear Industry News

• In November 2024, ABB designed OPTIMAX 6.4, software solution that is a key component of their new digital energy infrastructure, The Enhancement Systems, which mainly focuses on endorsing energy efficiency and to accelerate decarbonization. Along with that, the company endorsed their energy platform with cutting edge technology in modular mode.
  
• In July 2024, CG Power announced a USD 78 billion investment to complete its capacity expansion within 18 months, focusing on scaling up production for transformers, motors, and switchgears. The company also ventured into semiconductor manufacturing and initiated development of an Outsourced Assembly and Testing (OSAT) facility in Gujarat, reinforcing its strategic growth in high-demand sectors.
  

The switchgear market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) & (‘000 Units) from 2021 to 2034, for the following segments:

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Market, By Voltage

• Low
• Medium
• High

Market, By Insulation

• Air
• Gas
• Others

Market, By Current

• AC
• DC

Market, By Application

• Residential
• Commercial & Industrial
• Utility

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico 
• Europe
  • UK
  • France
  • Germany
  • Italy
  • Russia
  • Spain
• Asia Pacific
  • China
  • Australia
  • India
  • Japan
  • South Korea
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Turkey
  • South Africa
  • Egypt
• Latin America
  • Brazil
  • Argentina